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TMI Blog2020 (12) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... as not pressed. The assessee also raised additional ground with regard to reopening of assessment and granting of deduction under Section 54F of the Income Tax Act, 1961 ('the Act'). 3. At the time of hearing, the learned Authorised Representative has not pressed the ground relating to reopening of assessment. Accordingly the ground relating to reopening of assessment under Section 147 is dismissed as not pressed. 4. With regard to deduction under Section 54F of the Act, the contention of the assessee is that this ground is raised as additional ground and emanated from the order of the lower authorities. There is no necessity of investigation of any facts and prayed that the same may be admitted for adjudication. 5. The facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This issue was considered by this Tribunal in the case of Chandrashekar Veerabhadraiah Vs. ITO in ITA No.2293/Bang/2019 dt.07.12.2020 wherein it was held in paras 9 to 13 as under : " 9. We have heard both the parties and perused the material on record. Section 54F of the Act reads as follows: "54F. (1) [Subject to the provisions of sub-section (4), where, in the case of an assessee being an individual or a Hindu undivided family], the capital gain arises from the transfer of any long-term capital asset, not being a residential house (hereafter in this section referred to as the original asset), and the assessee has, within a period of one year before or 74[two years] after the date on which the transfer took place purchased, or has wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oor is fully occupied by the owner." 11. According to the DR, there are multiple residential units w.e.f. 01.04.2015, the assessee is entitled for deduction to the extent of value of only one residential unit. The claim of the assessee is that the assessee invested in single residential unit and is eligible for deduction under section 54F of the Act on the entire value of the building and relied on judgment on judicial High Court in the case of K. G. Rukminiamma 331 ITR 211 wherein it was held that the phrase "a" residential house would mean "one" residential house is not correct. The expression "a" residential house should be understood in a sense that building should be of residential house in nature and "a" and should not be understood ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trance so that it can be let out. He may even arrange for his children and family to stay there, so that they are nearby, an arrangement which can be mutually supportive. He may construct his residence in such a manner that in case of a future need he may be able to dispose of a part thereof as an independent house. There may be several such considerations for a person while constructing a residential house. The physical structuring of the new residential house, whether it is lateral or vertical, cannot come in the way of considering the building as a residential house. The fact that the residential house consists of several independent units cannot be permitted to act as an impediment to the allowance of the deduction u/s 54/54F. It is nei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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